Vale announces USD 4.1 bln investment in Argentina

Brazilian mining company Vale has recently announced an investment of USD 4.1 billion in the exploration and production of potassium in Argentina. The figure represents the largest investment made by a Brazilian company in the country. The plan includes the construction of a facility, a railroad section with 350 kilometers and the construction of a thermal power plant. Investments begin in 2010 with USD 300 million, said Vale. With the project Argentina will become the main exporter of potassium of the region. In addition, 8.000 job positions will be created.

Publication: BIS - Business Information Systems
Provider: Business Information Systems
November 23, 2009

Locaweb embarks on international expansion plan

Brazilian data storage company Locaweb expects international sales to account for 5% of overall revenues within three years, online news source Baguete quoted the company's corporate development director, Celso Nunes, as saying.

This comes after Locaweb disclosed plans to invest US$1mn to open a technical center in Miami and a support and service center in Montevideo.

"The Latin American hosted services market lacks local providers... consequently, we identified an opportunity to take our experience outside of Brazil," Nunes said.

In 2008 Locaweb posted revenues of 102mn reais (US$56.1mn), which are expected to increase roughly 36.7% this year. The firm, which has more than 196,000 clients, currently controls 21.8% of the Brazilian market share in hosting.

Brazilian press reported earlier this month that Locaweb will invest 35mn reais by the end of this year to expand infrastructure and improve services.

Nunes said part of the funds will be channeled towards the completion of the company's new data center.

Publication: Business News Americas - English News
Provider: Business News Americas
September 22, 2009

Anglo Ferrous granted right to mine at Pedra Branca do Amapari

Brazil's minerals production department (DNPM) has officially given multinational miner Anglo American (LSX: AAL), through its Anglo Ferrous Brazil subsidiary, possession of iron ore mines in Pedra Branca do Amapari, Amapá state, DNPM said.
The document gives Anglo Ferrous the right to process iron ore in the Pedra Branca do Amapari district. The mines in question are part of the Amapá iron ore system.

The approval is an important step in the consolidation of activities regarding Pedra Branca mineral reserves, according to the director of Anglo Ferrous' Amapá iron ore system, José Luiz Martins.

"This gives us the security to continue investing in Amapá and therefore increase iron ore production in the state," Martins was quoted as saying by local press.

Anglo American took control of the Amapá system when it purchased Brazilian miner MMX's IronX division in August 2008.

Publication: Business News Americas - English News
Provider: Business News Americas
September 1, 2009

DP World, Odebrecht to operate Embraport in Brazil

Global marine terminal operator DP World and Brazilian company Odebrecht announce they have entered into a partnership to acquire a majority stake at Empresa Brasileira de Terminais Portuários (Embraport), one of the largest Brazilian private multi-modal port terminals in the city of Santos.

It is the first time that DP World and Odebrecht Investiments in Infrastructure have formed such a partnership. The investment fund FI-FGTS of Caixa Econômica Federal will maintain its shareholding acquired earlier. Coimex Group, leader of the project since its inception, reduces its shareholding, but remains a key member of the partnership.

Embraport (Brazilian Port Terminals Company) is being built adjacent to Porto de Santos, an existing port facility in the city of Santos, São Paulo State. Porto de Santos is the largest Brazilian container port, with 90% of its cargo destined for the local São Paulo market. There is an excellent road and rail connectivity to the project site.

The first phase of the project is scheduled to be concluded in 2012 with around 1 million TEU (twenty foot equivalent container units) capacity and it will be operated by DP World. The fully developed project will have capacity of more than 1.5 million TEU and about 2 billion litres of ethanol. Phase-I is expected to be about a $500m terminal development.

DP World will provide its extensive experience in the development and operation of multi-purpose port facilities, while Odebrecht will contribute with its significant experience in constructing marine terminals and management infrastructure projects.

In addition, Odebrecht companies will increase the potential captive cargo, both cabotage and export, that can be handled through the project facility. Coimex Group plays an important role in the project for its expertise in foreign trade and logistics.

"It is a great opportunity to strengthen Odebrecht's relationship with DP World besides the current construction of DP World's container terminals in Callao, Peru and the terminal at Doraleh, Djibouti, Africa officially opened in February this year," said Odebrecht CEO Marcelo Odebrecht.

Publication: Andina - English Newswire
Provider: Andina
August 30, 2009

Marcopolo confirms Portuguese closure

Marcopolo, the biggest Brazilian bus-bodywork manufacturer, yesterday confirmed the closure of its factory in Portugal, inaugurated, as Marcopolo's first foreign subsidiary operation, back in 1990. The group will now have to supply much of Europe from Brazil. It closed one of its two Russian plants early this year in the light of a big dip in demand. Production at the Portuguese plant ended two weeks ago with the 170 employees sent off on collective holidays.

The Marcopolo installations in question are to be found in Coimbra; they produced 165 buses in 2008, the equivalent of just 0.8% of total company production (of 21,811 buses). In the first half of this year, the Coimbra factory produced just 58 buses. In February, Marcopolo began producing bodywork in India; in September, it will begin producing bodywork in Egypt. This will mean it has 13 plants operating in nine different countries in the final quarter of 2009.

Publication: SABI - Business News
Provider: South American Business Information
August 29, 2009

MRS Logística to invest US$249mn in 2009

Brazilian rail operator MRS Logística has confirmed a 549mn-real (US$249mn) investment budget for 2009, news service Agência Estado reported.

A total of 178mn reais will be used to buy rolling stock and office materials; another 221mn reais will be spent on track repairs; 112mn reais will be allocated to improve signaling, energy and telecommunications; and 38mn reais will be used for miscellaneous purposes, the report said.

Most of the resources will come from the company's own funds and the rest through financing.

At the same time, the company is forecasting a volume of nearly 137mn net-tonnes kilometer (TKU) for the year, the report said.

MRS Logística, a cargo railway concessionaire since 1996, operates the southeastern federal railroad network which connects the states of Rio de Janeiro, Minas Gerais and São Paulo.

The company has 1,643km of railways that connect to Sepetiba port, in Rio de Janeiro state, and Santos port, in São Paulo, according to a company release.

Publication: Business News Americas - English News
Provider: Business News Americas
March 26, 2009

Paraná Banco records profits up 11%

More susceptible to crises, as pointed out by the Central Bank at the end of last year, smaller banks, however, are now presenting balance sheets in which their conservative positions --even if they did not always bring larger profits--at least guaranteed their structures and greater normality at the beginning of 2009. This is what can be deducted from the results of Paraná Banco, which recorded a net profit of R$ 84.1 million in 2008, up 11.1% compared to 2007 profits of R$ 75.7 million. The 2008 profit represents a return on net equity of 10.5% and an efficiency index of 42.1% per year.

"If the operations had been normal the whole year net profits certainly would have reached R$100 million," said Cristiano Malucelli, director of investor relations of Paraná Banco. In the fourth quarter profits fell 55% compared to the same quarter prior year, totaling R$ 16 million, while the efficiency index rose from 35.5% to 51.7%, up 16l.2%

Paraná Banco was prepared for the crisis lowering its leverage and ending the year with a comfortable cash situation - R$ 600,3 million -or 78.4% of total deposits, which according to Malucelli enabled the bank to maintain an efficient strategy despite market uncertainties. In June 2007 the bank launched shares on the Bovespa exchange, where it obtained nearly R$ 604 million.

'We are foreseeing a situation in which it will be possible to resume operations with more force among corporate entities, especially small and medium size companies, since now is a good opportunity," he said.

Paraná Banco is specialized in consigned credit, a portfolio which represents 91% of its operations. Last year it sold R$ 340 million of these assets to make cash. "We ended the year as one of the most liquid banks in Brazil." Credit operations in 2008 amounted to R$ 1,10 billion, down 8.3% over 2007, while total assets amounted to R$ 1,97 billion, up 5.1% c.

A J. Malucelli Seguradora, J. Malucelli Resseguradora and J.Malucelli Seguradora de Crédito (awaiting authorization from the Susep insurance monitor agency, were responsible for 27% of the profit of the bank, and he said, profits are expected to grow this year.

Publication: Gazeta Mercantil - OnLine News - en
Provider: Gazeta Mercantil / Investnews
February 6, 2009

ArcelorMittal tackles iron mining operations

Jose Francisco Martins Viveiros, executive with ArcelorMittal, is moving from London to assume as president AcerloMittal Serra Azul, the filial that would manage the iron mining operations acquired from London Mining in a US$810mil deal by mid last year. Viveiros mission is to bring iron ore production to supply 70% of the steel major needs. He will manage, in addition to Serra Azul, at Minas Gerais state, the iron and manganese operations of MPP, at Corumba (Mato Grosso do Sul), purchased last August. There are other mining exploration concessions in Bahia state, part of the Brazilian iron assets. Serra Azul should have an output of 5mil m tons of ores in 2009, of which 2.1mil exported to Arcelor's sister companies.

Expansion is tied to the evolution of the iron market and Viveiros keeps an eye in the dry metallic ton unit (DMTU) prices to base investment decisions. He ponders the uptrend in commodity prices was unexpected as well as the downtrend that now starts. Uncertainties are high and there are no tools to measure and predict what the future holds. There are other concerns to flow off Serra Azul ores, one of them is the denial by the Rio de Janeiro authorities, of the project of ArcelorMittal to have its own port terminal at Itacuruca (Sepetiba Bay) in association with Brazore (Adriana Resources). It means exports would continue via the terminal of Vale while alternatives are being sought.

Publication: SABI - Business News
Provider: South American Business Information
February 6, 2009